Deck 2: Banking Regulations and Accounting Practices in India

Question 1

A parent co. should account for the investment in subsidiaries in accordance with AS -13

A)true
B)false
C)May be true
D)only b

Answer 1

true

Question 2

A-5 does not indicate the frequency of interim financial report.

A)true
B)either true or false
C)both a and b
D)only false

Answer 2

true

Question 3

A 25 focuses on change in accounting policies also.

A)true
B)only false
C)may be true
D)may be false

Answer 3

true

Question 4

As per As- 28 impairment of asset means decrease in the value of asset.

A)true
B)false
C)only true
D)May be true

Question 5

As per AS -30 prepaid expenses are not financial instruments.

A)true
B)false
C)neither true nor false
D)may be false.

Question 6

The banking regulation Act --.

A)1949
B)1947
C)1932
D)1956

Question 7

Banking companies in India are governed by …………………..

A)As per act 1932
B)Income Tax act
C)AS-23
D)Banking Regulation Act 1949

Question 8

An assets becomes non performing when it to generate income for bank.

A)lease
B)ceases
C)computerized
D)easy.

Question 9

Banks are to recognize their income on…………….basis in respect of income on performing asset.

A)Accrual
B)cash
C)credit
D)none.

Question 10

Banks are to recognize their income on……………… basis in respect of income on non performing asset.

A)Accrual
B)cash
C)credit
D)none.

Question 11

Sub standard asset are certain loan asset of a bank which are classified as ………….assets for a period not exceeding two year.

A)non -performing
B)performing
C)Current
D)Fluctuating.

Question 12

The main function of………………company are accepts deposits money

A)Private
B)Public
C)Banking
D)Capital marketing

Question 13

…………….asset is one which has been classified as non-performing asset for period not exceeding than………….years

A)Fixed - 13
B)Fluctuating - 11
C)Intangible - 1
D)Substandard - 2

Question 14

Core banking system…………. system.

A)Bank end
B)work flow
C)open end
D)internal

Question 15

Every banking company should prepare a balance sheet and profit and loss accounts as on……………..each year.

A)31st March
B)31st July
C)31st December
D)None

Question 16

Banking Companies in India are governed by Banking Regulation act 1952.

A)true
B)false
C)may be true
D)ma be false

Question 17

The main function of a banking company are to accept deposits of money from the public and to lend or invest these deposits.

A)true
B)false
C)only true
D)ma be false

Question 18

Non-Banking Assets must be shown in the Balance Sheet in scheduled 8.

A)true
B)may be false
C)may be true
D)false

Question 19

Acceptance, Endorsements and other obligations are a contingent liability of bank.

A)True
B)False
C)May be false
D)May be true

Question 20

Rebate of Bills discounted is an income received in advanced which is carried forward as other liability.

A)true
B)false
C)may be true
D)only true

Question 21

Transfer of money from one place to another i.e. mail transfer is an item to be excluded from bills payable.

A)True
B)False
C)May be false
D)May be true

Question 22

An assets become non-performing when it ceases to generate income for a Bank.

A)True
B)False
C)May be false
D)May be true

Question 23

Banks are to recognize their income on cash basis in respect of income on performing assets.

A)true
B)false
C)may be true
D)may be false

Question 24

Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years.

A)true
B)false
C)may be true
D)only true

Question 25

Every banking company incorporated in India must transfer to the Reserve fund a sum equivalent to not less than 25% of profit of each year before declaration of dividend.

A)true
B)false
C)only a
D)a or b